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Table 1
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(b) (i) Draw and label the stages of a product life cycle.
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(c) (i) The demand for Classic Computers’ products is price elastic. Do you think that the
Marketing Manager should increase the prices of computers? Explain your answer.
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(ii) Explain how two elements of a marketing mix other than price might help the sales
of Classic Computers’ products.
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(a) (i) Give two examples of health and safety problems that government laws might try
to solve.
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(ii) Do you think that governments should introduce health and safety laws? Explain
your answer.
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(ii) Explain one method that could be used to protect Anesh’s business from cheap
imports.
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(c) Why might a rise in interest rates affect the profits of Anesh’s business?
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Table 2
Sales 120
Cost of Sales 70
Gross Profit ?
Overheads 40
Net Profit 10
(a) Calculate:
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(d) Sabina was unsure of the meaning and importance of several items found in her
accounts.
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Table 3
(a) Does the information show that Manfred has a problem in keeping his staff?
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(b) Explain the possible reasons why Manfred’s staff are leaving their jobs.
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(d) When Manfred recruits new staff they are given induction training.
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© UCLES 2004 0450/01/M/J/04
11 For
Examiner’s
Use
5 Balltop plc is an engineering company based in England. It manufactures a range of
industrial products. The U.S.A. is its main market. It has been reported in newspapers that
the company dumps its industrial waste near to its factory.
(a) Which level of business activity best describes Balltop plc: Primary, Secondary or
Tertiary? Explain your answer.
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(b) How do the objectives of public sector activities often differ from those of the private
sector?
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(i) If a Balltop plc product is priced at £200 what price would you expect it to sell for in
the U.S.A.? Show your calculations.
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(d) Pressure groups, such as Greenpeace, are a group of people who feel strongly about
issues.
(i) How might a pressure group attempt to get a company like Balltop plc to change
some of its policies?
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(ii) Many people believe that it is the role of governments to pass laws to stop firms
damaging the environment. Do you agree?
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University of Cambridge International Examinations is part of the University of Cambridge Local Examinations Syndicate (UCLES) which is itself a department of
the University of Cambridge.
© UCLES 2004 0450/01/M/J/04